financial negotiation

The following items are tagged financial negotiation.

Negotiating for Continuous Improvement: Monitor and Assess Your Negotiation Skills

Posted by & filed under Negotiation Skills.

Many organizations subject their executives to rigorous performance reviews, yet few companies include negotiation effectiveness as one of the core competencies they track. Instead, negotiation is usually subsumed under categories such as “emotional intelligence,” or “persuasiveness.” The negotiator-related questions posed in most “36-degree assessments” don’t measure the right skills and abilities, such as preparation. When evaluators do assess negotiations, they typically rely only on post hoc accounts and overlook the details of the bargaining experience.

To Avoid Disaster, Plan Ahead

Posted by & filed under Business Negotiations.

In the midst of the recent financial crisis, accusations of greed on Wall Street have sounded across the globe. Greed may be a significant factor in the collapse of credit markets, but it’s not the only one. Overlooked in cries to punish the “bad apples” is the role of a mistake that virtually all negotiators make: ignoring how our short-term decisions will affect us and others in the future.

Tough Tactics: Do ‘Death Threats’ Really Work?

Posted by & filed under Business Negotiations.

What would you do if someone threatened you? Strike back? Run away? Beg for mercy? Try to negotiate?

Last April, The New York Times in effect held a gun to the heads of Boston Globe employees – twice. The confrontation, say experts at the Harvard Program on Negotiation, offers valuable lessons in handling high-risk, high-stakes situations.

Background: Sixteen years earlier, The Times bought The Globe for $1.1 billion, the highest price ever paid for an American newspaper. The investment paid off at first, then the newspaper business started heading south. In 2008, The Globe lost $50 million; in 2009, it was on track to lose $85 million.

So The Times threatened to shut the paper down unless employee unions agreed to $20 million in pay cuts, lower severance pay, and an end to lifetime job guarantees for certain employees. Half the concessions – $10 million – were to come from The Globe’s largest labor union, the Boston Newspaper Guild.

Financial Negotiations: Brad Pitt’s Negotiation Nightmare

Posted by & filed under Business Negotiations.

In challenging economic times, negotiators can find themselves in an entirely new ball game. That’s what happened to actor Brad Pitt, film director Steven Soderbergh, and their production team when Sony Pictures abruptly pulled the plug on their film project Moneyball just days before the start of shooting in late June.

Negotiating Financial Strategies that Work: Adding Third Parties to Seal the Deal

Posted by & filed under Business Negotiations, Daily.

As negotiation experts, David Lax and Professor James Sebenius find that many negotiators focus on process and substance. Whether in person, over the phone, or through email, business outcomes seem determined by how well parties can establish trust, communicate, and put the best deal on the table. These are the first two and best known dimensions to financial negotiations.

How Should I Negotiate the Best Possible Price for a New Car?

Posted by & filed under Business Negotiations.

This is one of the most common negotiation questions. A car is one of the most significant purchases you’ll make, and the price is almost always negotiable. Here are some tips to help you with this financial negotiation.

Prepare, prepare, prepare. You can’t walk into a dealership without having done some online research. Online you can

The Value of Making Several Offers in Business Negotiations

Posted by & filed under Business Negotiations, Daily.

What’s the right number of options to put forward in financial negotiations? In their April 2005 article in the Negotiation newsletter, “Putting More on the Table: How Making Multiple Offers Can Increase the Final Value of the Deal,” Northwestern professors Victoria Husted Medvec and Adam D. Galinsky write that issuing three equivalent offers simultaneously can be a good strategy in financial negotiations.

The Value of the Contrast Effect in Financial Negotiations

Posted by & filed under Daily.

In financial negotiations, it’s always better when someone accepts your offer rather than rejecting it, right? Actually, rejection can sometimes be the most effective way to get to “yes.”

Here’s a story about consumer behavior in financial negotiations, as described by Itamar Simonson of Stanford’s Graduate School of Business and the late Amos Tversky in a